It would be clearer to just say that capitalism is the outcome of our current corporate laws. It is not our system of government — it is manifest and enforced by corporate laws that do all the things you say: give “shareholders” all the power, and create powerful entities in our society (corporations) that are, in effect, sociopaths.

You are right Umair, that is a central problem. But how do we fix it? We must change corporate law. It has nothing to do with our system of government — it is purely a legislative problem.

And you are right that most people incorrectly conflate capitalism with freedom and with our system of government.